Fiat will place workers at Pomigliano, where it makes the Panda compact, on a temporary layoff scheme from Oct. 29 to Nov. 9, a company source said on Tuesday.

World Bulletin / News Desk

Italian carmaker Fiat SpA will stop production at its Pomigliano plant for two more weeks at the end of October because of a weak European market.

Fiat will place workers at Pomigliano, where it makes the Panda compact, on a temporary layoff scheme from Oct. 29 to Nov. 9, a company source said on Tuesday.

Fiat has sent workers home from many of its Italian plants on temporary layoffA this year because of slack demand. At Pomigliano, workers will end a two-week layoff on Oct. 5.

Fiat Chief Executive Sergio Marchionne said last month the European car market's five-year slump made it "more likely" there will be co-ordinated plant closures across the continent.

However, he reassured unions he would not close factories in Italy despite a plunging domestic market.

Car sales dropped further in austerity-hit France, Italy and Spain last month and European car executives have warned that a rebound may be years rather than months away.

Truck and tractor maker Fiat Industrial SpA, which was spun off from Fiat last year, will also halt production at the San Mauro Torinese plant of its U.S. farm equipment unit CNH Global NV, the Fiom trade union said in a statement on Tuesday.

Workers at the CNH plant will be put on temporary layoff for nine days in November and five days in December, it said.

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